POST UTME GREENFIELD UNIVERSITY 2024 Economics | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A government imposes a tax of ₦10 on a firm's output. If the firm's supply curve is given by \( Q = 2P - 10 \), what is the firm's new supply curve?
A. \( Q = 2P - 20 \)
B. \( Q = 2P - 15 \)
C. \( Q = 2P - 10 \)
D. \( Q = 2P + 5 \)
Question 2
Consider a perfectly competitive market with n firms, each producing a homogeneous product. If the market demand curve is downward-sloping and the firms are price-takers, what is the equilibrium price and quantity?
A. \( P = 10, Q = 100 \)
B. \( P = 20, Q = 50 \)
C. \( P = 30, Q = 200 \)
D. \( P = 40, Q = 150 \)
Question 3
A country's balance of payments is given by the equation BOP = X - M, where BOP is the balance of payments, X is the value of exports, and M is the value of imports. If the value of exports is ₦100 billion and the value of imports is ₦120 billion, what is the balance of payments?
A. ₦20 billion
B. ₦30 billion
C. ₦40 billion
D. ₦50 billion
Question 4
A perfectly competitive market has multiple firms producing a homogeneous product. If the market price is $10 and the marginal \cost of production is $8, what is the profit-maximizing quantity of output for each firm?
A. \( Q = \frac{P - MC}{MR} \)
B. \( Q = \frac{MC}{P} \)
C. \( Q = \frac{P}{MC} \)
D. \( Q = \frac{MR}{P} \)
Question 5
A central bank is considering a monetary policy action to reduce inflation. If the current inflation rate is 5% and the target inflation rate is 2%, what is the required reduction in the money supply?
A. 10%
B. 15%
C. 20%
D. 25%
Question 6
A country's balance of payments is given by BOP = X - M, where X is exports and M is imports. If exports increase by ₦100 billion and imports decrease by ₦50 billion, what is the change in the balance of payments?
A. ₦50 billion
B. ₦100 billion
C. ₦150 billion
D. ₦200 billion
Question 7
A firm's production function is given by Q = 2L^0.5K^0.5. If the firm's current labor and capital inputs are L = 16 and K = 9, find the marginal product of labor.
A. 1/4
B. 1/2
C. 1
D. 2
Question 8
A firm is producing a good with a total revenue of ₦200,000 and a total \cost of ₦150,000. The firm's marginal revenue is ₦10,000 and its marginal \cost is ₦5,000. What is the firm's profit-maximizing output?
A. 20 units
B. 30 units
C. 40 units
D. 50 units
Question 9
The production function for a firm is given by Q = 2L^0.5K^0.5. If the firm increases its labor input from 4 units to 9 units, and holds capital input cons\tant at 16 units, what is the percentage change in output?
A. 25%
B. 50%
C. 75%
D. 100%
Question 10
A firm's total revenue is given by the equation \( TR = 100P - P^2 \). If the price is $20, what is the total revenue?
A. ₦400
B. ₦600
C. ₦800
D. ₦1,000
Question 11
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 10Q + 100. What is the profit-maximizing price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 12
The supply curve for a commodity is given by the equation Q = 100 + 2P, where Q is the quantity supplied and P is the price. If the demand curve is given by the equation Q = 200 - 5P, what is the equilibrium price?
A. ₦50
B. ₦75
C. ₦100
D. ₦125
Question 13
A firm's \cost function is given by (C(q) = 10q + 20). If the firm's revenue function is (R(q) = 20q), what is the firm's profit-maximizing quantity?
A. \( q = 2 \)
B. \( q = 5 \)
C. \( q = 10 \)
D. \( q = 15 \)
Question 14
A monopolist faces a demand curve given by Q = 100 - 2P and a \cost function C(Q) = 2Q^2 + 10Q. Find the profit-maximizing price and quantity.
A. P = 40, Q = 30
B. P = 50, Q = 25
C. P = 60, Q = 20
D. P = 70, Q = 15
Question 15
A country's GDP is ₦10 trillion, its GNP is ₦12 trillion, and its net factor income from abroad is ₦2 trillion. What is the country's net national product?
A. ₦10 trillion
B. ₦12 trillion
C. ₦14 trillion
D. ₦16 trillion

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